TY - BOOK ID - 85502562 TI - Monetary and fiscal policies and the dynamic of the yield curve in Morocco AU - Ahokpossi, Calixte AU - García Martínez, Pilar AU - Kemoe, Laurent AU - International Monetary Fund. PY - 2016 SN - 10185941 SN - 147552630X 9781484365465 1484365461 9781475526301 1475526296 PB - [Washington, D.C.] DB - UniCat KW - Fiscal policy KW - Bonds KW - Monetary policy KW - Monetary management KW - Economic policy KW - Currency boards KW - Money supply KW - Bond issues KW - Debentures KW - Negotiable instruments KW - Securities KW - Debts, Public KW - Stocks KW - Tax policy KW - Taxation KW - Finance, Public KW - Government policy KW - Banking KW - Banks and Banking KW - Central bank policy rate KW - Central Banks and Their Policies KW - Deflation KW - Diffusion Processes KW - Dynamic Quantile Regressions KW - Dynamic Treatment Effect Models KW - Econometric analysis KW - Econometrics & economic statistics KW - Econometrics KW - Finance KW - Financial Markets and the Macroeconomy KW - Financial services KW - Inflation targeting KW - Inflation KW - Interest rates KW - Interest Rates: Determination, Term Structure, and Effects KW - Macroeconomics KW - Monetary economics KW - Monetary Policy KW - Money and Monetary Policy KW - Price Level KW - Prices KW - Time-Series Models KW - Vector autoregression KW - Yield curve KW - Morocco UR - https://www.unicat.be/uniCat?func=search&query=sysid:85502562 AB - We estimate the latent factors that underlie the dynamics of the sovereign bond yield curve in Morocco during 2004–14 based on the Dynamic Nelson-Siegel model. On this basis, we explore the interaction between macroeconomic variables and the yield curve, which is of direct relevance to macroeconomic policy-making. In Morocco’s context, we find that tighter monetary policy increases short-end maturities, and that the impact is small and short-lived. Economic activity is also briefly but significantly impacted, suggesting that even under a pegged exchange rate, monetary policy autonomy and effectiveness can be increased through greater central bank independence. Fiscal improvements significantly lower yield levels. Policy conclusions are that improvement in the fiscal and monetary policy frameworks, as well as greater financial sector development and inclusion, could benefit Morocco and strengthen the transmission mechanisms and effectiveness of macroeconomic policies. ER -